UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 333-1614
BENEFICIAL MORTGAGE CORPORATION
(Depositor and Master Servicer)
BENEFICIAL HOME EQUITY LOAN TRUST 1996-1
(Issuer in Respect of the Beneficial Home Equity Loan Asset Backed Certificates)
(Exact name of registrant as specified in its charter)
New York (Issuer) 11-3314368 (Issuer)
(State or other jurisdiction of (I.R.S Employer Identification No.)
incorporation or organization)
301 North Walnut Street
Wilmington, Delaware 19801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (302) 425-2500
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
The registrant is a trust with no common stock outstanding.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Beneficial Home Equity Trust 1996-1
Balance Sheet
June 30, 1996
ASSETS
Cash $ 0
Total Assets $ 0
OWNER'S BENEFICIAL INTEREST
Owner's Beneficial Interest $ 0
Total Owner's Beneficial Interest $ 0
See Notes to Financial Statements.
Beneficial Home Equity Trust 1996-1
Statement of Cash Flows
For the Period April 30, 1996 (date of formation)
to June 30, 1996
Cash Flow from Operating Activities:
Net Proceeds from Issuance of Beneficial Home Equity Loan
Asset Backed Certificates (including accrued interest) $1,201,345,000
Net Cash Flows Representing the Purchase of Mortgage
Loans (including accrued interest) (1,201,345,000)
Principal and Interest Payments Collected 112,556,096
Principal and Interest Payments Disbursed (112,556,096)
Net Increase in Cash 0
Cash Balance, Beginning of Period 0
Cash Balance, End of Period $ 0
See Notes to Financial Statements.
Beneficial Home Equity Trust 1996-1
Notes to Financial Statements
June 30, 1996
Note 1. Organization and Operations
Beneficial Home Equity Loan Trust 1996-1 (the "Trust") is a trust
established on April 30, 1996, under the laws of the State of New York,
pursuant to a Pooling and Servicing Agreement dated as of April 1, 1996 (the
"Pooling and Servicing Agreement"), between Beneficial Mortgage Corporation
(the "Master Servicer" and "Depositor") and The Chase Manhattan Bank
(National Association), acting thereunder not in its individual capacity but
solely as trustee. The trust's only purposes are to hold a pool of Home
Equity Loans and to issue securities. The Securities consist of one class of
senior certificates (the "Class A Certificates") and three classes of
subordinated certificates (the "Class M Certificates", the "Class B
Certificates" and the "residual certificates", respectively). All of the
Certificates except the residual certificates were offered and sold to the
public. The Certificates represent obligations solely of the Trust. The
Trust receives specified portions of payments received from the related Home
Equity Loans subsequent to March 31, 1996, as set forth in the Pooling and
Servicing Agreement.
The owners of the Certificates are the beneficial owners of the Home
Equity Loans. The value of the Certificates issued by the Trust equaled the
value of the Home Equity Loans conveyed to the Trust by the Master Servicer
and Depositor; therefore, no assets or liabilities are reflected on the
Trust's balance sheet. Also, there was no income or expense or gain or loss
to the Trust resulting from the transaction; therefore, no statement of income
has been presented.
As of June 30, 1996, the Trust had an aggregate unpaid certificate
balance of $1,088,788,904.
Note 2. Income Taxes.
An election has been made to treat the Trust as a Real Estate Mortgage
Investment Conduit ("REMIC") for federal income tax purposes. As such, the
Trust will not be subject to federal, state or local income taxes.
Beneficial Home Equity Loan Trust 1996-1
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
RESULTS OF OPERATIONS
On April 30, 1996, the Trust issued $1,072,200,000 aggregate principal
amount of Class A Certificates having a pass-through rate equaling the lessor of
the London interbank offered rate for one-month U.S. dollar deposits ("LIBOR")
plus 18 basis points and the weighted average of the Net Loan Rates (as
defined below); $66,074,000 aggregate principal amount of Class M Certificate
having a pass-through rate equaling the lessor of LIBOR plus 28 basis points
and the weighted average of the Net Loan Rates; $63,071,000 aggregate principal
amount of Class B Certificates having a pass-through rate of the lessor of
LIBOR plus 25 basis points and the weighted average Net Loan Rates. The Net
Loan Rate is the rate of interest applicable to each Home Equity Loan less
the servicing fee. All Certificates represent an undivided interest in the
Trust which holds a pool of Home Equity Loans. The sale of the Home Equity
Loans to the Trust, the issuance of the Certificates, and the simultaneous
delivery of the Certificates to the Master Servicer for sale by Morgan Stanley
& Co. Inc., Bear, Stearns & Co. Inc., J.P. Morgan & Co., Merrill Lynch & Co.,
Salomon Brothers Inc., and UBS Securities LLC. pursuant to a public offering
have been accounted for as a sale of Home Equity Loans by the Master Servicer
and Depositor. The value of the Certificates issued by the Trust equaled the
value of the Home Equity Loans conveyed to the Trust by the Master Servicer and
Depositor. Accordingly, there was no income, expense, or gain or loss
resulting to the Trust from the aforementioned transaction.
CHANGES IN CASH FLOW
The Trust's primary sources of funds with respect to the Certificates are
receipts of interest and principal on the Home Equity Loans, along with certain
insurance proceeds, certain proceeds obtained from Liquidated Home Equity Loans
and any investment income earned thereon, if any. The management of the Master
Servicer believes that the Trust will have sufficient liquidity and capital
resources to pay all amounts of the Certificates as they become due and all
other anticipated expenses of the Trust. The Trust does not have, nor will it
have in the future, any significant source of capital for payment of the
Certificates other than the receipt of interest and principal from the Home
Equity Loans. The Trust is a limited purpose Trust. The Certificates
represent obligations solely of the Trust.
Beneficial Home Equity Loan Trust 1996-1
PART II. OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K.
(a) Exhibits
* 20.1 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated
July 29, 1996.
20.2 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated
June 28, 1996, is incorporated by reference to Exhibit
20.1 of the Form 8-K dated June 28, 1996.
20.3 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated
May 28, 1996, is incorporated by reference to Exhibit
20.1 of the Form 8-K dated May 28, 1996.
(b) The Trust filed the following report on Form 8-K during the period
covered by this Form 10-Q:
1) A report on Form 8-K, dated May 28, 1996, relating to the
Beneficial Home Equity Loan Asset Backed Certificates, Series
1996-1 Statement to Certificateholders, dated May 28, 1996.
2) A report on Form 8-K, dated June 28, 1996, relating to the
Beneficial Home Equity Loan Asset Backed Certificates, Series
1996-1 Statement to Certificateholders, dated June 28, 1996.
* Filed herewith.
Beneficial Home Equity Loan Trust 1996-1
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on behalf
of Beneficial Home Equity Loan Trust 1996-1 by the undersigned, thereunto duly
authorized.
BENEFICIAL HOME EQUITY LOAN TRUST 1996-1
Registrant
By: Beneficial Mortgage Corporation
(Depositor and Master Servicer)
By: /S/Richard J. Zak
Richard J. Zak
Vice President (Chief Accounting Officer)
August 13, 1996
Beneficial Home Equity Loan Trust 1996-1
Exhibit Index
Exhibit
Number Exhibit
20.1 * Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated July 29, 1996.
20.2 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated June 28, 1996,
is incorporated by reference to Exhibit 20.1 of the Form 8-K, dated
June 28, 1996.
20.3 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated May 28, 1996,
is incorporated by reference to Exhibit 20.1 of the Form 8-K, dated
May 28, 1996
* Filed herewith.
Exhibit 20.1
STATEMENT TO CERTIFICATEHOLDERS
Beneficial Mortgage Corporation Current Collection Period 28May-96 to 27Jun-96
Beneficial Home Equity Loan Asset Certificates P & S Agreement 01-Apr-96
Class A Certificates, Series 1996-1
Class M Certificates, Series 1996-1 Original Settlement Date 30-Apr-96
Class B Certificates, Series 1996-1 Distribution Date 29-Jul-96
1 Month LIBOR 5.4922%
Class A Pass-Through Rate (1 mo LIBOR + 18 bps) 5.6722%
Class M Pass-Through Rate (1 mo LIBOR + 28 bps) 5.7722%
Class B Pass-Through Rate (1 mo LIBO + 25 bps) 5.7422%
Distribution to Holders of Class A Certificates (per Certificate with
a $1,000 denomination)
1 i. Amount Allocable to Class A Principal 36.180726
ii. Amount Allocable to Unpaid Class A Principal Shortfall 0.000000
iii. Remaining Unpaid Class A Principal Shortfall
After Such Distribution 0.000000
2 i. Amount Allocable to Class A Interest 4.601783
ii. Amount Allocable to Class A Carryover Interest
Shortfall 0.000000
iii. Amount Allocable to Unpaid Class A Interest Shortfall 0.000000
iv. Remaining Unpaid Class A Interest Shortfall After
Such Distribution 0.000000
3 i. Amount of Class A Principal Shortfall For Such
Distribution Date 0.000000
ii. Amount of Class A Interest Shortfall For Such
Distribution Date 0.000000
Distribution to Holders of Class M Certificates (per Certificate with
a $1,000 denomination)
4 i. Amount Allocable to Class M Principal 0.000000
ii. Amount Allocable to Unpaid Class M Principal
Shortfall 0.000000
iii. Remaining Unpaid Class M Principal Shortfall
After Such Distributuion 0.000000
5 i. Amount Allocable to Class M Interest 4.970506
ii. Amount Allocable to Class M Carryover Interest
Shortfall 0.000000
iii. Amount Allocable to Unpaid Class M Interest Shortfall 0.000000
iv. Remaining Unpaid Class M Interest Shortfall After
Such Distribution 0.000000
6 i. Amount of Class M Principal Shortfall For Such
Distribution Date 0.000000
ii. Amount of Class M Interest Shortfall For Such
Distribution Date 0.000000
Distribution to Holders of Class B Certificates (per Certificate with
a $1,000 denomination)
7 i. Amount Allocable to Class B Principal 60.212980
ii. Amount Allocable to Unpaid Class B Principal
Shortfall 0.000000
iii. Remaining Unpaid Class B Principal Shortfall After
Such Distribution 0.000000
8 i. Amount Allocable to Class B Interest 4.323135
ii. Amount Allocable to Class B Carryover Interest
Shortfall 0.000000
iii. Amount Allocable to Unpaid Class B Interest Shortfall 0.000000
iv. Remaining Unpaid Class B Interest Shortfall After
Such Distribution 0.000000
9 i. Amount of Class B Principal Shortfall For Such
Distributuion Date 0.000000
ii. Amount of Class B Interest Shortfall For Such
Distribution Date 0.000000
10 Ending Class A Principal Balance 971,369,523.49
11 Ending Class A Principal Factor 90.5959265%
12 Ending Class M Principal Balance 66,074,000.00
13 Ending Class M Principal Factor 100.0000000%
14 Ending Class B Principal Balance 51,345,380.19
15 Ending Class B Principal Factor 81.4088570%
16 i. Ending Pool Number of Loans 21,052
ii. Ending Pool Balance 1,100,514,889.19
17 i. Number of Mortgage Loans 30 to 59 Days Delinquent 932
ii. Aggregate Principal Balances of Mortgage Loans
30 to 59 Days Delinquent 54,264,344.18
iii. Number of Mortgage Loans 60 or More Days Delinquent 158
iv. Aggregate Principal Balances of Mortgage Loans
60 or More Days Delinquent 11,990,033.41
18 Book Value of Real Estate Aquired Through
Foreclosure or Grant of Deed 510,835.19
